Method and system for enabling use of loyalty program points as form of payment

A method for enabling use of loyalty program points as form of payment, the method comprising the steps of:

• receiving through an application programming interface (API), from a first computer associated with an e-commerce agent, a request for a loyalty points price along with a transaction information package comprising a cash price and user identification information;
• sending the user identification information to a second computer associated with a loyalty program and requesting user account authentication from the loyalty program;
• querying the second computer associated with a loyalty program for a user information package comprising a loyalty program points balance, a user customer segment, and a cash-to-points conversion factor;
• calculating a loyalty points price based on the cash price and the cash-to-points conversion factor;
• sending, through the API, to the first computer associated with the e-commerce agent, the loyalty points price;
• receiving through the API, from the first computer associated with an e-commerce agent, confirmation of transaction completion and a number of loyalty points utilized;
• and
• sending instructions to the second computer associated with the loyalty program to debit from the updated loyalty program points balance the number of loyalty points utilized in the transaction.

A method for enabling use of loyalty program points as form of payment, the method comprising the steps of:

• receiving through an application programming interface (API), from a first computer associated with an merchant, a request for a loyalty points price along with a transaction information package comprising a cash price and user identification information;
• sending the user identification information to a second computer associated with a loyalty program and requesting user account authentication from the loyalty program;
• querying the second computer associated with a loyalty program for a user information package comprising a loyalty program points balance, a user customer segment, and a cash-to-points conversion factor;
• calculating a loyalty points price based on the cash price and the cash-to-points conversion factor;
• sending, through the API, to the first computer associated with the merchant, the loyalty points price;
• receiving through the API, from the first computer associated with an merchant, confirmation of transaction completion and a number of loyalty points utilized;
• and
• sending instructions to the second computer associated with the loyalty program to debit from the updated loyalty program points balance the number of loyalty points utilized in the transaction.